Transit Trade Rules-2011: submission of security must for Afghan importers

The government of Pakistan will make it mandatory for Afghan importers to submit customs duty security in the form of bank guarantee, pay order or demand draft en-cashable in Pakistan under the new Afghan Pakistan Transit Trade Agreement (APTTA). Sources told Business Recorder here on Tuesday that the provision has been incorporated in the new Afghan Transit Trade Rules-2011 finalised by the Federal Board of Revenue (FBR).
The new rules would be notified after incorporating viewpoint of the stakeholders. The guarantees furnished by banks, which operates in both Pakistan/Afghanistan and en-cashable in any branch of Pakistan or any other such bank shall be entertained. Otherwise, banks guarantees would not be acceptable by the Pakistani customs authorities.
It is not practically possible for Pakistani customs to go to Afghanistan for encashment of securities furnished by Afghan banks only. How the customs authorities would en-cash such guarantees if such financial securities have only been furnished by banks in Afghanistan? Therefore, it was a conscious decision that the guarantees of only those banks would be acceptable, which have branches in both Pakistan and Afghanistan, sources added.
According to the Afghan Transit Trade Rules-2011, the Afghan based importer or his representative/or authorised clearing agent in Pakistan shall furnish customs security, acceptable to Customs, in the form of Bank Guarantee, pay Order or Demand Draft en-cashable in Pakistan which shall be valid for at least one year, for ensuring the fulfilment of any obligation arising out of Customs transit operation between Pakistan and Afghanistan.
The amount of Customs security for transit operation shall be determined by the Appraising Officer/Principal Appraiser of the office of departure (customs port of entry) so that it covers all import levies, including but not limited to customs duty, regulatory duty, sales tax, Additional sales tax, regulatory duty, federal excise duty, income tax etc and any other import levy chargeable on goods so carried.
The rules said that the Afghan-based importers or his representative or authorised clearing agents in Pakistan who regularly carries out customs transit operations shall be entitled to lodge a revolving guarantee not less than thrice the amount of duty and taxes involved, acceptable to customs, which shall be valid for at least one year. The revolving Bank Guarantee once furnished for seeking clearance of Transit Cargo at one office of departure will be retained by that office and will not be valid for presentation to any other office of departure.
Bank guarantees including revolving bank guarantee, furnished by such banks, which operates in both the countries ie, Pakistan & Afghanistan and en-cashable in any branch of Pakistan or any other such bank shall be entertained. The rules further said that the Assistant/Deputy Collector of office of departure, on receipt of bank guarantees, covering duty/taxes involved on vehicles/goods entering Pakistan, shall ensure that guarantee has been issued by the authorised bank and contents thereof are in consonance with the consignment against which it is being furnished.
In-charge Afghan Transit Group at the office of departure shall ensure entries in the relevant register as well as in computer system are as per specified format maintained for the purpose in their respective offices. After acknowledging receipt of the original Bank Guarantees, entries shall be made in a separate register to be maintained for the purpose and feed the particulars of the instrument in the Pral software designed for maintenance of financial securities, Afghan Transit Trade Rules-2011 added.